Corporate Bond Investment
Corporate bonds are debts issued by industrial, financial and service companies to finance capital investment and operating cash flow. It is a bond that a corporation issues to raise money in order to expand its business. The term is usually applied to longer-term debt instruments, generally with a maturity date falling at least a year after their issue date.
Sometimes, the term corporate bonds is used to include all bonds except those issued by governments in their own currencies. Strictly speaking, however, it only applies to those issued by corporations.
Some corporate bonds have an embedded call option that allows the issuer to redeem the debt before its maturity date. Other bonds, known as convertible bonds, allow investors to convert the bond into equity.
Investors in corporate bonds have a wide range of choices when it comes to bond structures, coupon rates, maturity dates, credit quality and industry exposure.
To find out more about Corporate Bond options please contact a qualified Holborn Assets Adviser.